Weekly Update 47-Bullish Sectors

  This week in the stock market was bullish. The dollar was up over 107 and can probably overcome that resistance. Usually Gold responds to a strong dollar by going lower but that is not the case now. Gold is now up 150$ since the correction lows. It stands on 2715 this Friday and ended the day with a powerful move higher before the weekend. It looks to me as if there is not any resistance until the psychological resistance at 3000$. Therefore I added goldstocks to the portfolio this week. I also find value in some resource and energy stocks. Crypto and especially Bitcoin is in a bullmarket, however it is difficult here to judge resistance at 100 k. We will see what happens when that is reached soon.

Next week is short in the markets due to Thanksgiving. I expect bullishness to continue. On Friday we have a FRO report which I will look into next weekend in the TSC Premium. 

The Sectors: There is no less than Eight Sectors that are positive in all timeframes! This is an everything bullmarket. The Energy Sector is now positive too. The only Sectors still in negative trend is Real Estate Sector, Basic Materials Sector and Healthcare Sector. 

But we can be sure that one day, this will end too.

S&P500 is over 6000. Warren Buffett is selling stocks for cash. He must consider the stock market overvalued? Share buy backs is a way for insiders to sell stocks for cash and still support the share price. 

A very strong dollar is not yet a sign of weakness in the stock market but is a sign of uncertainties due to war and trade tariffs.

The Gold/Silver miners are in a business that is not easy to handle. Therefore it is easy for financial media to focus on the companies that have failed projects. Then a whole industry can get a bad reputation. There are many successful companies out there. It is a question of finding them. Mining remains a difficult enterprise so therefore it is best to keep it simple. Juniors in hunt for capital can sometimes take on too much and promise too much. For example a company starting several projects or mines in different geographical spots just to give the impression of competence will sometimes fail completely to get the requiered capital to fund any mining activities in the future and the exposure to problems a long the way increases. Mining is expensive and it is best to start with only one mine, to get some cash flow before continuing to other sites or projects.

Weekly Update 46

  We have a look at the miners this week in the Premium Section! How does the technical picture look right now and which particular mining company is interesting for me to invest in? Do I see any fundamental reason and when is the timing right?

This week in the markets was bullish in the first half and bearish in the second half. The Stockmarket responded favorably to the election and rose slightly to ATH with over 6000 in the S&P. The valuation is now stretched to at least 22 x earnings. It is still a question how long this will hold up. The bond yields are up to one year highs. We have the small caps in consolidation after last weeks breakout. Small Caps have higher risk than the big techs but now it seems even the techs are volatile. They respond well to earnings but then looses ground a couple of days later. Investors are chasing gains in them and small caps. If one stock rises, the crowds will immediatly buy that one, for two or three days. That is to me a market that are chasing gains knowing the market is overvalued, maybe with leverage. This is a trending market for sure but it is vulnerable to any unknown event. We will see more volatility and more opportunities for trading. The reasons for chasing the market is maybe debt also. If you need to get away from debt you need gains, and we know that the economic system is in debt. The North American Stockmarket is the most liquid market in the world and money is flowing around. However we can now see, because we are following the Sectors, that a rotation is ongoing from Information Technology to more cyclical Sectors of the markets. The coming weeks we are interested in the current strenght in trend in the Energy Sector and Industrials Sector. Also the Financial Services Sector has been acting positively. The Credit Services and Capital Markets Subsector. Especially the Fintechs rose this week due to the expected Trump effect. This will probably continue next week too. But if we look at Crypto longer term it could be a disapointment because it will not be an accepted asset in the way people think. Besides it was not the idea from the beginning.

The Sectors:

Energy Sector is improving and now we are only waiting for the weekly to become positive. Financial Services, Industrials, Consumer Cyclical, Technology and Communication Services Sector are all green.

This week we could find great gains among some stocks in the Healthcare Sector that is negative in the Daily timeframe.

Consumer Defensive, Real Estate and Consumer Defensive Sector are negative in Daily but positive in Weekly and Monthly trend.

Basic Materials Sector is negative in Daily but has some really good trading-material in it.

BTCS Inc.

Weekly chart

This chart is from the Financial Services Sector and one example of a Fintech stock that rose last week. The trade was only three days. It requires timing and lot of practice to trade this. If you bring up a chart of your own in Daily timeframe you can see that it started on 11/11 but I found it on the 11/12 and traded for two days. The third day was also up and then on Thursday it gave back 15%. 

We hope next week will bring peace to the world, deep frozen ice on the poles, new spieces in nature and new trading opportunities! 

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